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Grafton council approves donation of 6 acres and up to $250,000 housing incentive after transparency concerns

City of Grafton City Council · August 12, 2024
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Summary

The Grafton City Council voted 6–1 Aug. 12 to donate six acres and contribute up to $250,000 from the Grow Grafton housing incentive to MAK Construction for a two‑building apartment project after questions about transparency and precedent were raised.

GRAFTON — The City of Grafton agreed Aug. 12 to donate six acres in the Dakota Addition to MAK Construction and contribute up to $250,000 from its Grow Grafton housing incentive to support construction of two 36‑unit apartment buildings.

The Economic Development Committee recommended the donation and incentive. Councilmember Greg Young moved the measures and Brad Burianek seconded. The council approved both items on roll call by a 6–1 vote; Councilmember Brian Sieben cast the lone dissenting vote.

Sieben questioned how the $250,000 gift request arose and urged greater transparency, saying the city has faced repeated requests for additional funding in other projects. Mayor Chris West said the committee is exploring program changes to allow incentives for larger housing projects and argued the local funding is necessary to close a financing shortfall that otherwise would prevent the project from moving forward.

Council members who voted in favor — Brad Burianek, Kylen Kostrzewski, Donavon McMillian, Phil Ray, Darrin Wollitz and Greg Young — accepted the committee recommendation despite Sieben’s concerns. The council did not specify conditions or a timetable for disbursement beyond approving the contribution amount.

The donation and incentive are intended to support construction of two multi‑family buildings (described in the motion as “2 36 plex apartments”) in the Dakota Addition; the council packet did not attach a project financing schedule in the minutes. Mayor West and Economic Development representatives indicated the Grow Grafton program may be amended to provide incentives for larger projects, but no formal amendment was adopted at the meeting.

Next steps: the Economic Development Committee will continue working on program details and any required agreements or authorizations; the council did not set a public hearing or specific funding release schedule during the Aug. 12 meeting.